Health Care Service Corporation (HCSC) has signed a definitive agreement to acquire Cigna’s Medicare Advantage, Supplemental Benefits, Medicare Part D, and CareAllies businesses. This monumental transaction is set to close in the first quarter of 2025, pending regulatory approvals and other customary closing conditions.
A Bright Future Ahead
This acquisition promises to bring tremendous value to our members post-closing, and we couldn’t be more excited about the future. Rest assured, we deeply appreciate your continued partnership and are committed to supporting you throughout this transition and beyond.
What Does This Mean for You?
Until the transaction closes, Cigna’s Medicare businesses and HCSC will continue to operate as separate entities. For the 2025 plan year, Medicare plans will be offered and sold under each company’s respective brands. Post-2025, we will explore integrating the two companies further.
Given the expected 2025 close, there will be no changes to Medicare Advantage plan benefits or premiums for the 2025 plan year for either company (Medicare Supplement plans will follow state filings). HCSC and Cigna members will remain enrolled in and covered by their existing plans upon the close of the transaction for the duration of the 2025 plan year.
Continued Support and Communication
The Group Retiree Business will proceed as usual. Your dedicated HCSC and Cigna representatives will keep you updated on all the exciting changes this transaction brings to the market for you and your clients.
Both Cigna and HCSC are dedicated to ensuring a smooth transition and maintaining the continuity of service for our valued broker partners. We are committed to ensuring uninterrupted service and access to care for our customers following the close.
Stay Tuned for More Updates!
We will keep you informed with additional information as it becomes available. Thank you for your continued partnership and dedication to our members.
FAQs
What happens to customers enrolled in a Cigna Medicare Advantage plan for the 2025 plan year when the transaction closes? Will they automatically transition to a plan offered through a division of HCSC?
Customers will remain enrolled in and covered by their existing Cigna plan upon the close of the transaction in 2025 for the duration of the 2025 plan year. There will be no changes to plan benefits or premiums in plan year 2025.
Will the closing trigger a special election period for my customers?
No, a special election will not be triggered. Customers will remain on their existing plan and coverage.
After closing, will HCSC offer Medicare Advantage, Supplemental Benefits, or PDP plans in markets where Cigna Medicare operates today but HCSC does not?
Yes, and we will provide updates as more information becomes available.
Thank you once again for your continued partnership with Agility. Stay tuned for more updates!
